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Technology Stocks : VerticalNet, Inc. [VERT]

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To: S.C. Barnard who wrote (97)2/11/1999 7:21:00 PM
From: S.C. Barnard   of 1094
 
Great review from SmartMoney:
smartmoney.com

(Paul Cook, manager of Munder NetNet Fund)
"...Cook cites another advantage to VerticalNet's business model: It has
the potential to become profitable far faster than its rivals, which target consumers. Remember AOL? It is generating earnings now, but AOL
was in the red on and off from its founding in 1985 until 1997 because
it was spending roughly a third of its revenue carpet-bombing the
country with diskettes. It's the same kind of marketing spending that
keeps companies like Amazon.com (AMZN) from being profitable. But
Cook says that companies targeting businesses will have to spend far
less to get the attention of users. "Businesses are less interested in brand names," he says. "You provide them with a value proposition
and they will come."
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